KOLKATA: Multi-system operator (MSO) Siti Networks will pick up 76 per cent stake in Meghbela Infitel Cable & Broadband through its subsidiary Indian Cable Net Company. The board constituted investment committee of the company has approved the acquisition in a meeting held on 25 March 2021.

Meghbela Infitel was incorporated on 9 July 2015 under the Companies Act, 2013. It is engaged in MSO business and has a presence in Kolkata. 76 per cent equity stake in the paid-up equity share capital of the company will be acquired by Siti Networks’ subsidiary.

While consideration will be payable in cash, 7,600 shares will be acquired at Rs 10 each. “Meghbela is in the process of acquisition of cable TV business in Kolkata, which will help in expansion of the market of the company in Kolkata,” the company said in a regulatory filing on BSE.

Siti Networks posted Rs 390.6 crore total revenue for the third quarter of FY2020. It posted Rs 270.6 crore subscription revenue in the same quarter.

The MSO’s operating EBITDA surged to Rs 63.80 crore. This was achieved through strict control over expenses and operating efficiencies, the company stated. Its operating EBITDA margin for the quarter moved to 16.3 per cent through control of various cost elements.

Siti Broadband also expanded its footprint to 21 cities by the end of the quarter, with the net base increasing to 1.9 lakh.